Friday, September 30, 2016

Good Customer Service at Large Florida CUs May Be an Urban Legend

A new report highlights the decline in customer service at Florida credit unions, as consumer complaints about Florida credit unions continue to rise.

The report looks at the number of consumer complaints filed with the Florida Department of Financial Institutions in 2015. Credit unions accounted for almost one-third of the 626 consumer complaints in 2015.

According to the "2015 FLORIDA BANK COMPLAINT ANALYSIS" by K.H Thomas Associates, LLC, the number of large Florida credit unions in the Top 10 Complaint list has risen over the last three years.

"Three of the 15 or one-fifth of the financial institutions on the Top Ten complaint list (counting ties) in 2013 were credit unions. In 2014, four of the 12 or one-third of the institutions in the Top Ten list (again counting ties) were credit unions. By 2015, five of the 12 or 42% of the institutions in the Top Ten list (again counting ties) were credit unions. Thus, the proportion of credit unions in the Top Ten complaint list increased from 20% to 33% to 42% in the last three years."

According to the report, all five of the financial institutions with the highest BCIs in 2015, ranging from 3.8 to 8.8, were credit unions. Space Coast Credit Union had the highest BCI at 8.8, followed by Orlando-based Fairwinds Credit Union at 7.8.

The report stated: "Although credit unions are traditionally known for their good customer service, this complaint analysis ... suggests that this may be somewhat of an “Urban Legend” here in Florida based on these BCI results."

Below is a table listing banks and credit unions with the highest number of complaint in 2015 along with their corresponding BCI.

6 comments:

True. But isn't this "study" only looking at half the issue. Aren't all the banks listed under CFPB supervision? Wouldn't most complaints go to their primary regulator especially since CFPB asks for complaints to be filed with it? I would imagine that if CFPB complaints were included in this study, the numbers would not look so good. But then again, I do not have an advance degree in statistics. Only 40 years of experience in sports statistics - where each missed shot in basketball must have a rebound to go with it. Missed shots = rebounds.

Hey anonymous, and in 40 years of watching basketball you never saw a missed shot go out of bounds?

Imagine this......credit unions, had they spent the last 40 years focused on meaningful improvement in public awareness and not jacking up bounced check fees and whining incessantly about banks and the need for a level playing field......would have been better paying taxes and getting equal footing w banks.Then our "movement belief" that we are better could have been truly been tested.Instead, whining took precedence and we have a 40 year "missed shot" that went out of bounds and cannot be rebounded.Clown.

Fair enough, but immaterial.What's your take on 40 years of missed shots and lost opportunities?40 years of saying and doing the same things and expecting different results?Market awareness of credit unions hasn't changed not has market share.Some big credit unions doing great, the rest not so.MILLIONS of member money wasted down a rat hole on CUNA and Nafcu.Is there a rebound and easy "put back" in there somewhere?

About Me

Dr. Keith Leggett is retired from the American Bankers Association, where he was a Senior Vice President & Senior Economist. He is a leading expert on credit unions and the National Credit Union Administration.

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